Average Credit Card Debt - What Does It Mean For You?

The average credit card debt of Americans and those around the world has a large impact on your financial well being. According to a April 2009 Nilson Report, 78% of American households have a credit card. Before we get to the average credit card debt, it is important to point out that according to the same report, Americans' held a combined credit card debt of $972.73 billion. How do you stack up to the average credit card debt? Read on...

When it comes to average credit card debt, the average credit card balance per card was $1,157 at the close of 2008 (according to Experian, March 2009). Moreover, the average outstanding credit card debt for households amounted to an impressive $10,679 by the end of 2008. Another way to look at the average credit card debt is to consider the average balance for people carrying a balance, which was $7300 in 2007. Keep in mind that this is an averaged credit card debt and can be skewed by those who have extremely high credit card debt. Other ways to look at average credit card debt statistics involve the mean.

There are a lot of numbers out there and ways to look at the average credit card debt, but what does it mean for you? Even if you're average credit card debt is below that of the various national averages, you should not be content. Credit card debt is an extremely expensive and wasteful proposition. Unless you have an emergency going on in your life, reducing and eventually eliminating credit card debt (and thus your own average credit card debt) should be your primary financial objective. In future posts we will discuss how to reduce debts in sustainable ways to get you on the path to financial freedom. Stay tuned for more information on average credit card debt and other financial/credit card topics.